Is Hedge Fund King Steve Cohen the New Michael Milken
Is Steve Cohen the New Michael Milken?
Steve Cohen, manager of SAC hedge fund, has had returns of over 30 percent for 18 years leading up to a loss in 2008. He established great returns leading up to the dot com crash, got out at just the right time and had massive returns shorting the stocks on the downside that he made money on as they went up. The CEO of Overstock.com, Patrick Byrne, has said that there could be a connection between Cohen and legendary but convicted junk bond king, Michael Milken. Byrne has said that the links that lead to Cohen, led in the past to Milken. He believes that there is a massive organization that controls the way stocks are traded and these apparently make money for all the banksters on Wall Street. It has been reported that SAC Capital gets 4 bucks for every dollar from the likes of JP Morgan, Goldman Sachs and other primary dealers.
We know that the primary dealers make money off of the taxpayer by selling bonds to Ben Bernanke at a premium. Bernanke is forbidden from buying the bonds directly from the treasury. That frees up a lot of "mad money", if you know what I mean. The banks want a big return, and so do pension funds. They are gamblers supreme. But what if this gambling has at it's core a ring of insider traders and information being received that the public has no access to? I guess it could be great for your pension plan, but if you are a retail investor in stocks you are at the mercy of this system.
But if the SEC, who looked the other way as Cohen may have received inside information in the past, is on the case, along with the justice department, then Cohen could be toast.
Important Update: Mathew Martoma has been charged with insider training. He reports to Steve Cohen. Sharks have to be circling around Cohen and I predicted the Feds were going after him. This gets really close to the top. Martoma is charged with securities fraud and is looking at 20 years. I predict he will sing like a Miss Piggy if he can implicate Cohen, for a lesser sentence.
This is a huge insider trading case, with 276 million dollar profits. It is the largest ever.
Gasparino broke the story that Cohen is cooperating with the investigation.
Steve Cohen Massive Insider Trading Network
Is Michael Milken Just Fighting Cancer?
Milken was convicted of securities fraud in 1989. He was again brought to the carpet as a he violated the lifetime ban from Wall Street by engaging in work as a "strategic consultant".
Milken then was diagnosed with cancer and spent his time fighting that disease. He gave a lot of money to charity, as hedge fund dons are likely to still do. Milken was never convicted of insider trading. However, he was accused of stock price manipulation.
In the Light of This Syndicate, Retail Investors Should Be Careful
Retail investors will have a lot of difficulty in putting money into a stock market that is apparently controlled by a syndicate with governmental backing. All the little efforts to go after this bad guy and the next is simply not going to give confidence to investors, who may be pulling money out of bonds, but are not willing to play the Bernanke game and commit to a stock market that had a flash crash, that allows naked shorting, that allows massive insider information, etc.
This is the bottom line regarding stocks, it is a fools game and retail investors are the fools. If you think you can beat this game, it is unlikely that you can outsmart the professionals who clearly may not be playing by any rules I am familiar with. Here is the problem, even if you kill the alleged head of the syndicate, Steve Cohen, by banning him from Wall Street, it won't matter. You have to kill the syndicate, and that is something our government seems unwilling to do. Never forget, the government is never on your side and will not be until massive penalties, death penalties, must be handed out to corporations to bring Wall Street to her knees.
You see, it is much easier to short stocks when you have inside information. You participate in a run up, and you make money as you buy stocks, and then as the economy suffers you can actually enhance the downturn by shorting stocks. Actually, you can't do this, but big players like Goldman Sachs and others alleged to be in the ring of insiders can kill the retail investor by these tactics.
Cramer Exposed by Jon Stewart
Erin Burnett's Strange Behavior When at CNBC
Dendreon, Cramer and Naked Short Selling
Dendreon had a promising prostrate drug. It is estimated that many people died because people shorted the stock of this company with naked shorts. A naked short means you sell a stock you don't even own. These phantom shares increase the amount of shares a company has, even though they don't really exist, driving the price down, down, down.
Even Jim Cramer, who had come out afterward being against naked short selling, very likely helped the destruction of the stock price as Deep Capture, a blog that uncovers naked short selling, implicated Cramer as being a part of the short selling scam and network.
The question is: Did Jim Cramer contribute to 60 thousand men being denied a valid and crucial medical treatment that would have saved their lives?
This network that apparently had ties to Milken in the past has hurt people and isn't just a game of harmless insider trading, where, as CNBC has said, no one gets hurt.The scam includes misinformation, insider information, short selling illegally, and government complicity. The scam includes the SEC looking the other way and also the generation of false reports on stocks issued by the press! Even the press is captured. And evenCNBC appears to be on the side of making insider trading legal. If the government wants to screw the retail investor with all these scamsters pitching in, there is no choice than to boycott the stock market permanently.
According to the above link, Milken's network may have included government officials, Cramer, medical individuals with interests against Dendreon, and financial interests, ie., hedge funds. No one has been charged, but hey, if Cramer can do what he did, then we can point out the suspicion.
Insider Trading Links
- SAC Capital Fund Manager Said to Be Uncharged Conspirator - Businessweek
SAC Capital Fund Manager said to be unindicted co-conspirator.
- Steven Cohen | Benzinga.com
I'll put it this way: if you dig into them, and if you go onto Deep Capture, you'll see dozens and dozens of pieces and analyses that trace these links, they all trace back to Steven Cohen of SAC Capital. And then, if you go back 10 or 15 years...
- The Government\'s Noose Is Tightening Around SAC\'s Steve Cohen
Cohen's relationship with David Ganek, Richard Grodin and Michael Steinberg historically went beyond professional collegiality.